Q. India has adipted _ _ _ Exchange rate system.
✅ Correct Answer: (C)
Managed
Business Economics MCQs and Notes
Q. Flexible exchange rate system, the exchange rate is determined by _
✅ Correct Answer: (A)
Market forces
Q. Under managed float, the central bank of a nation intervenes to_ _ foreign currency.
✅ Correct Answer: (A)
only purchase
Q. Under IMF, the exchange rate system was _
✅ Correct Answer: (A)
gold standard
Q. Purchasing Power Parity Theory considers that goods in different countries are _
✅ Correct Answer: (B)
identical
Q. Exchange rate between two currencies is based on _ __
✅ Correct Answer: (A)
purchasing power of two currencies
Q. Which of the following is not an assumption of the Purchasing Power Parity theory? _
✅ Correct Answer: (D)
Changes in the exchange rate changes internal price level
Q. According to the Purchasing Power Parity theory, the rate of exchange between the currencies of two countries is determined by_
✅ Correct Answer: (A)
their relative price levels
Q. Transaction in which currencies to be exchanged the next day of the transaction is known as
✅ Correct Answer: (D)
value tomorrow
Q. Transaction in which exchange of currencies take place at a specified future date, subsequent to spot date is known as,
✅ Correct Answer: (B)
forward transaction